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IRS Will Allow Costs of Breast Pumps as Deductible Medical Expenses

In a
reversal of long-standing policy, the IRS announced it will treat
expenses for breast pumps and supplies that assist in lactation as
deductible medical expenses (Announcement 2011-14).
The IRS also said that amounts that taxpayers are reimbursed for
these expenses under a flexible spending arrangement, Archer medical
savings account, health reimbursement arrangement or health savings
account will not be income to the taxpayer.

However,
to be deductible, taxpayers’ total medical expenses must still meet
the 7.5% of adjusted gross income threshold and other requirements
of IRC § 213.

The
announcement does not offer an analysis of the IRS’ reasoning or
explain why it changed its position. It simply states that breast
pumps and supplies that assist in lactation “are for the purpose of
affecting a structure or function of the body of the lactating
woman,” and therefore are deductible under IRC § 213(d). Previously,
the IRS characterized breast pumps as “merely beneficial to general
health, but are not for the purpose of affecting any structure or
function of the body” (letter from Gregory F. Jenner, acting
assistant secretary (Tax Policy) (6/8/04)).

As
recently as May 2009, the IRS position was that “[i]t is not within
the authority of the Internal Revenue Service to classify
breastfeeding equipment as medical care in contravention of current
law. A change to the Internal Revenue Code must be made by Congress”
(IRS Information Letter 2010-0173 (5/23/09)).

In
the announcement, the IRS stated its intention to update Publication
502, Medical and Dental Expenses, to reflect this change.